19697982 Total Quality Management

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TOTAL QUALITY MANAGEMENT: TQM

Origins, Evolution & key elements

What is Quality? Quality is “fitness for use” (Joseph Juran) Quality is “conformance to requirements” (Philip B. Crosby) Quality of a product or services is its ability to satisfy the needs and expectations of the customer

Evolution of Quality Management Inspection

Salvage, sorting, grading, blending, corrective actions, identify sources of non-conformance

Quality Control

Develop quality manual, process performance data, self-inspection, product testing, basic quality planning, use of basic statistics, paperwork control.

Quality Assurance

Quality systems development, advanced quality planning, comprehensive quality manuals, use of quality costs, involvement of non-production operations, failure mode and effects analysis, SPC.

TQM

Policy deployment, involve supplier & customers, involve all operations, process management, performance measurement, teamwork, employee involvement.

Deming’s view of a production as a system Receipt & test of materials Suppliers, materials & equipment

Production, assembly, inspection

Design & redesign

Distribution

Test of processes, machines, methods, cost

Consumer Research

Consumers

Deming’s Chain Reaction Improve Quality Cost decreases because Provide jobs and of less rework, fewer more jobs Stay in business

mistakes, fewer delays, snags, better use of machine time and materials

Productivity improves Capture the market with better quality and lower price

The Deming Cycle or PDCA Cycle PLAN

ACT

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Adopt the change as a permanent modification to the process, or abandon it.

DO

Implement the change on a small scale and measure the effects

CHECK Study the results to learn what effect the change had, if any.

W. Edwards Deming’s 14 Points

1) Create constancy of purpose towards improvement of product and services.

2) Adopt the new philosophy. We can no longer live with commonly accepted levels of delays, mistakes, defective workmanship.

3) Cease dependence on mass inspection. Require, instead, statistical evidence that quality is built in.

4) End the practice of awarding business on the basis of price tag.

W. Edwards Deming’s 14 Points 5) Find problems. It is management’s job to work continually on the system.

6) Institute modern methods of training on the job. 7) Institute modern methods of supervision of production workers. The responsibility of foremen must be changed from numbers to quality.

8) Drive out fear that everyone may work effectively for the company.

W. Edwards Deming’s 14 Points 9) Break down barriers between departments. 10) Eliminate numerical goals, posters and slogans for the workforce asking for new levels of productivity without providing methods.

11) Eliminate work standards that prescribe numerical quotas.

12) Remove barriers that stand between the hourly worker and his right to pride of workmanship.

W. Edwards Deming’s 14 Points 13) Institute a vigorous programme of education and retraining.

14) Create a structure in top management that will push everyday on the above 13 points.

Deming’s System of Profound Knowledge Appreciation for system

Theory about knowledge

Knowledge about variation

Knowledge of psychology

Joseph M. Juran and the Cost Of Quality 2 types of costs: Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC) Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

“Gold in the Mine”

Joseph M. Juran and the Cost Of Quality Costs Total Costs

Unavoidable costs

Avoidable costs 100% defective

Point of “Enough quality”

What is TQM? Constant drive for continuous improvement and learning.

Result Focus

Actions not just words (implementation)

Management by Fact

Passion to deliver customer value / excellence

Process Management

Concern for employee involvement and development

Organisation response ability Partnership perspective (internal / external)

LEARNING AND TQM Learning Process Improvement Quality Improvement Customer Satisfaction

Shareholder Satisfaction

Employee Satisfaction

BASIC PRINCIPLES OF TQM Approach Scope Scale

Management Led Company Wide Everyone is responsible for Quality

Philosophy

Prevention not Detection

Standard

Right First Time

Control

Cost of Quality

Theme

On going Improvement

FOUR KEY PRINCIPLES

•Measure quality so you can affect it •Focus on a moving customer •Involve every employee •Think long term - Act short term

THE CASE FOR QUALITY 1 Success of competitors who take quality seriously 2 Rising expectations of customers 3 Quality differentiates companies from the competition 4 Narrowing of supplier bases by quality conscious companies .

THE CASE FOR QUALITY 5 Growing evidence that growth in market share comes from sustained quality. 6 Cost advantages 7 High cost of catastrophic failure 8 Inspection poor substitute for right first time

SEVEN DEADLY SINS OF TQM •Flight to nowhere •One size fits all •Substituting TQM for leadership •Inside - Out indicators •Mandatory religion •Quality kept as a separate activity •Teaching to the test Booz-Allen & Hamilton

IS QUALITY A SOUND INVESTMENT? Year 1988 1988 1989 1990 1990 1990 1991 1992 1992 1992 1993 1994

Company Stock Growth (Oct 94) Motorola 373.0% Westinghouse (CNFD) - 49.6% Xerox (BPS) 75.9% General Motors 1.6% Federal Express 10.6% IBM (IBM Rochester) - 34.9% Selectron 526.9% AT&T (UCS) 32.2% AT&T (TSBU) 32.2% Texas Instruments (DS&E) 106.8% Zyta 8.4% Eastman Chemical 18.5%

Total Stock Value Standard & Poor 500 Stock value Source: US Dept. of Commerce Study 1995

£23016 (91.8% growth) £15911 (32.6% growth)

Q Project Quality Assurance Project Quality Plan PQP

Project Quality Plan Definition • The project quality plan is a documented description of the project management system and must be approved by the AEM, in part to demonstrate his commitment to quality but primarily it is the means by which technical and administrative authorities are delegated through out the project. • All projects shall have quality plan. • Project engineer shall develop and update the PQP. .

Relationships between project quality plans PQP ADCO PQP Designer PQP construction contractor

Suppliers quality plans

Preparation of a project quality plan Confirm project objectives

AEM/PE/HE

Plan the project allocate resources

AEM/PE

Identify critical activities

HE/HC/PE

Define standards and controls

DE/CE/PE

Audits

QA/SCE/PE

Close-out

PE

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

1. COVER SHEET + REVISION CONTROL 1.1 Document purpose 1.2 Policy statement 2.INTRODUCTION 2.1 2.2 2.3 2.4

Background Project Scope Project Objectives & Constraints QA Standards (Consider putting in Document purpose)

CONTENTS OF TYPICAL PROJECT QUALITY PLAN 3. EXECUTION STRATEGY 3.1 3.2 3.3 3.4 3.5 3.6

Project Management risks. Critical Activities. Control Strategy. Cost & Schedule. HSE Plan. Commissioning & Hand-over.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN

4.ORGANISATION, RESPONSIBILITES & INTERFACES 4.1 Table with names 4.2 External interfaces 4.3 Definition of specific roles and responsibilities. 5. QUALITY REFERENCE SYSTEM 5.1 Controlling Documents 5.2 Applicable Procedures (Check list based) 6. INTEGRATION OF CONTRACTORS & SUPPLIERS 6.1 Define Contractor interfaces. 6.2 Contractor + Supplier Quality System.

CONTENTS OF TYPICAL PROJECT QUALITY PLAN 7.AUDITS & REVIEWS This section should include schedule for: * PHSER * HAZOP * TECHNICAL REVIEWS * LESSONS LEARNT REVIEW. 8. QUALITY IMPROVEMENT 8.1 LESSONS LEARNT 8.2 CLOSE-OUT REPORT

* HSEIA * VE * QA AUDITS

CONTENTS OF TYPICAL PROJECT QUALITY PLAN PREPARATION & APPROVALS: PREPARE: ENDORSE: APPROVE:

PE, PM and / or Team Leaders AEM EPM

Timing The nominated PE, PM or Team leader shall develop the PQP immediately after receiving the PID document and approval of the project in the Business Plan.

Quality is a Journey, not a Destination

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